JSW Steel finalises Welspun Steel division acquisition for Rs 848 cr
JSW Steel has entered an agreement with Laptev Finance to acquire Welspun Group's high-grade steel plates and coil division—Welspun Steel Ltd for Rs 848 crore.
In 2019, Welspun Group had assigned the sale of its steel division to Laptev Finance. As a part of the deal, JSW will also buy out a land parcel attached to the plates and coil mills division for Rs 1.50 crore.
JSW Steel signed the deal with Laptev to acquire Welspun plates and coil business as a going concern on a slump sale basis for Rs 848 crore, subject to closing adjustments towards net working capital.
The consideration amounts will be paid on a deferred basis, subject to Welspun fulfilling certain regulatory approvals and payment milestones as provided under the Business Transfer Agreement, JSW Steel said in a statement.
The steel major has started production of an additional 5 million tonne per annum (mtpa) steel at its Dolvi plant in Maharashtra. The expansion at Dolvi has increased the company's steelmaking capacity to 23 million tonne per year.
JSW has invested Rs 15,000 crore in doubling the capacity along with a 1.5 mtpa coke oven plant. The supporting facilities are to be commissioned progressively in the coming days.
The expansion at Dolvi was to be completed in September 2020 but was delayed due to the Covid-19 pandemic. Non-availability of required manpower and material due to the lockdown announced by the government on the back of the pandemic and its subsequent extensions had hit the execution of the project. Further, the non-availability of foreign experts from technology and equipment suppliers due to international travel restrictions also impacted the commissioning schedule of the Dolvi project.